This file photo taken June 7, 2024, shows the main gate of Samsung Electronics Co.’s headquarters in Suwon, south of Seoul. (Image courtesy of Yonhap)
SEOUL, Nov. 14 (Korea Bizwire) – Samsung Group shares, long considered a cornerstone of South Korean investing, continued their downward trajectory as foreign and institutional investors led a significant selloff, while retail investors moved to buy the dip. Market analysts suggest that despite current undervaluation, a quick recovery appears unlikely.
On November 13, Samsung Electronics closed at 50,600 won, dropping 2,400 won (4.53%) and touching a new 52-week low of 50,500 won during trading. The tech giant’s shares have plummeted 43.3% from their July 11 peak of 88,800 won, when they briefly approached the 90,000-won mark.
The decline extended across Samsung Group affiliates, with Samsung SDI hitting a 52-week low of 255,000 won. Hotel Shilla and Samsung Electro-Mechanics also reached yearly lows at 36,850 won and 106,700 won respectively.
Samsung C&T approached its yearly low of 115,400 won, closing at 117,000 won, while Samsung Biologics recently lost its status as a “emperor stock” (valued over 1 million won per share).
Foreign investors have led the exodus, selling 1.66 trillion won worth of Samsung Electronics shares between November 1-12, making it their largest divestment. Samsung SDI ranked second with 255.8 billion won in foreign selling.
Institutional investors similarly retreated, with Samsung SDI and Samsung Electronics topping their sell list at 153.1 billion won and 127.8 billion won respectively.
Samsung Electronics ‘ stock price is displayed on a screen at Yonhap Infomax in Jongno-gu, Seoul, on the afternoon of 13 November. (Yonhap)
In contrast, retail investors have been actively buying Samsung Group shares during the downturn, targeting Samsung Electronics, Samsung SDI, Samsung SDS, Samsung Electro-Mechanics, and Hotel Shilla.
The sell-off has been attributed to disappointing earnings. Samsung Electronics’ third-quarter operating profit fell below 10 trillion won, missing market expectations.
Samsung SDI reported a 72% year-over-year decline in operating profit, while Hotel Shilla swung to a loss. Despite posting solid results, Samsung C&T and Samsung Electro-Mechanics still fell short of consensus estimates.
While analysts suggest limited downside risk given the steep decline, they advise caution due to lack of near-term catalysts.
“Memory demand growth is expected to slow next year while supply growth accelerates, leading to a downturn in market conditions,” said Kim Kwangjin, an analyst at Hanwha Investment & Securities. “Patience is required at this point.”
Samsung SDI, a leading battery manufacturer, faces ongoing challenges in its end markets, with weak electric vehicle battery demand expected to impact fourth-quarter results. Hotel Shilla’s duty-free business shows only sluggish recovery signs, with analysts projecting weak momentum through 2025.
Kevin Lee (kevinlee@koreabizwire.com)
